UK Firm, FSD Africa proposes Revision of Nigeria's Insurance Regulations

The FSD Africa is a non-profit company sponsored by the UK’s Department for International Development has launched the Risk, Resilient and Regulatory Lab (R3lab) to modify the regulatory terrain in Nigeria.

The launch symposium was summoned by the National Insurance Commission (NAICOM) of Nigeria, the UN Environment Programme’s Principles for Sustainable Insurance Initiative (PSI), and FSD Africa.

The growth of R3Lab is required to stimulate and ameliorate regulatory dealing between insurance regulators which will sustain their procedures and generate remedies essential to cultivate an enabling regulatory atmosphere.

R3Lab is directed to deliver bespoke capacity-building schemes, peer-to-peer trade platforms, a detailed knowledge toolkit, a resource center, data collection and reporting, and topical task forces and symposia for insurance administrators in Africa.

What they are asserting

The Commissioner for Insurance, Sunday Thomas, conversing during the launch; recognized the assistance of the Uk Aid and FSD equity as its growth partners whilst citing that the establishment of the R3 lab was bestowed the tool for common interest in maximizing the power of the African insurance industry and examining ways in which partnership, technology, and insurance supervisory capacity is building competency.

He asserted, “We are all cognizant of the evolving stake in Africa’s economy such as climate change, pandemic, digitization, vague awareness and lack of confidence in the insurance sector and the demand for different schemes to increase the capabilities of Africa supervisory authorities to effectively operate and safeguard insurance policyholders.

“The R3lab proposes an intuitive method towards cultivating an enabling setting with sound proportionate and fit-for-purpose practices. Risk, resilience, and Regulation are the key entry points for the R3lab to construct the technical capacity that scales the regulatory capacity on innovation and sustainable insurance.”

Furthermore, he spoke of the R3 lab initiative as a third joint initiative that has been vetted through the FSD Africa partnership with NAICOM.

“The first was FSD Africa’s support to the commission in the view of existing regulation including identifying framework and tools required by NAICOM for Risk-Based Capital (RBC). It is common knowledge that we are just at the deployment stage of RBC on our market and we want to migrate from there to the implementation of risk-based capital in which case the issue that surrounds recapitalization would no longer be an issue.

“This will enable NAICOM to fully implement a scalable RBC Framework in Nigeria as well as to help it develop an innovation framework for NAICOM to fulfill its dual objectives of market development and policyholders’ protection.

“It is also fulfilling to state that, FSD Africa in furtherance of its sponsorship to NAICOM and the Nigerian insurance industry, officially inaugurated the second project, the BimaLab Insurtech Accelerator in February 2022. The platform selects, coaches, and mentors Insurtech firms, granting these firms access to FSD Africa BimaLab Grant Fund in developing innovative business solutions focused on solving compelling economic or social problems,” he added.

CEO, FSD AFRICA, Mark Napier, appreciated the regulator for its part to influence and facilitate a good insurance market; having to supervising, licensing, and also develop the industry, especially when aids are scarce, and creating an inclusive market despite the difficult challenges abounding.

He voiced that bringing opinions around innovation indicates massive responsibility, hence the necessity to acknowledge these challenges and appreciate the efforts of the regulator.